Handouts Create Resentment
Anytime you increase the amount of currency in circulation in a specific geographic area it will lead to consumer price inflation. If you give more housing vouchers to Americans in Cleveland, housing will get more expensive. Whether the handouts are given to the current citizens or the new immigrants is completely irrelevant to pricing. It only effects perception. The more currency given away (flow) compared to the amount currently being spent (Stock) increases the stock/flow ratio. Injecting more housing vouchers in a small town like Springfield, OH will cause much more rent inflation than if you gave the same number of vouchers in Cleveland, OH. This is pricing many long-term locals out of their own town. That causes resentment & leads to many other problems.
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